I finally figured it out and now have a helicopter flying just the way that I like. Some Zeal vibration absorbing material was the secret to success. I have used this before on tail gyros and it always works wonders. For those who don’t know about it’s a high-density gel type material that is incredibly good at isolating vibration. It’s a little expensive but well worth the price. http://www.heliproz.com/prodinfo.asp?number=138006
Now I can run much higher gains with no oscillations. With more gain high-speed pirouettes are rock solid. The secret to good pirouettes with the SK360 is lots of hiller and damping gain. Just keep cranking it up until it gets unstable then back off a little.
I also did some experimenting with dampers and found that harder is not always best and I could actually run more gain if the dampers were not too hard. Since the gyro is controlling the cyclic rate and feel, harder dampers don’t change the way the helicopter performs in flight that much it just effects the amount of gain that you can run. Optimum damping will be different for each setup and headspeed so that’s something everyone should experiment with.